S&P: Telemar Norte on watch

Standard & Poor's said it placed its BB+ long-term corporate credit ratings on Telemar Norte Leste SA and Tele Norte Leste Participações SA and the ratings on the local debentures of Telemar Participações SA on CreditWatch with negative implications.

The agency said that the CreditWatch listing follows Telemar Participações's decision to proceed with a debt-funded tender offer for the acquisition of Tele Norte's and Telemar's outstanding nonvoting shares.

Although a successful outcome of the proposal would provide Telemar Participações's controlling shareholders with the necessary flexibility to make several decisions regarding these companies' corporate structure, the agency added.

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